ViaSat-3 F1 Satellite Enters Commercial Service

Rhea-AI Summary

Viasat, Inc. (NASDAQ: VSAT) has announced that its ViaSat-3 F1 satellite has entered commercial service, enhancing passenger Wi-Fi services for airlines operating over North America, including routes to Hawaii. This follows successful testing and live trials in the first half of 2024. Despite an antenna deployment anomaly that reduced overall capacity, the satellite can still support high-speed broadband services for aviation customers.

Jimmy Dodd, President of Viasat's Aviation segment, emphasized the significant improvement in passenger experience, including streaming content and connectivity. Craig Miller, President of Global Space Networks, noted that this marks the start of revenue-generating services from the first of three ViaSat-3 satellites. Two additional ViaSat-3 satellites are in late stages of production and testing.

Positive

• ViaSat-3 F1 satellite entered commercial service, enhancing Wi-Fi services for North American aviation
• Satellite can support high-speed broadband services despite antenna deployment anomaly
• Two additional ViaSat-3 satellites in late stages of production and testing

Negative

• Antenna deployment anomaly resulted in significant reduction in overall satellite capacity

Insights

Satellite Communications Expert

The entry of ViaSat-3 F1 into commercial service marks a significant milestone for Viasat, despite the antenna deployment anomaly. This development has mixed implications for the company:

• Positive: The satellite is operational and generating revenue, demonstrating Viasat's resilience and technical prowess.
• Negative: The antenna issue has resulted in a significant reduction in overall capacity, potentially limiting the satellite's full potential and revenue generation.

The successful deployment, even with reduced capacity, showcases the robustness of ViaSat-3's design. However, investors should closely monitor how this capacity reduction affects Viasat's ability to meet customer demands and compete in the market. The upcoming financial results call on August 7 will be important for understanding the full impact on Viasat's financial outlook.

Aviation Industry Analyst

The introduction of ViaSat-3 F1 into commercial service is a notable development for the aviation sector. It promises to enhance in-flight Wi-Fi services over North America, including routes to Hawaii. Key points to consider:

• Improved passenger experience could lead to increased customer satisfaction and potentially higher adoption rates of in-flight Wi-Fi services.
• Airlines partnering with Viasat may gain a competitive edge in attracting tech-savvy travelers.
• The capacity reduction due to the antenna issue might limit the number of airlines Viasat can effectively serve, potentially impacting market share.

While the launch is positive for Viasat's aviation segment, the true test will be in the performance and reliability of the service under real-world conditions. Investors should watch for feedback from airlines and passengers to gauge the long-term impact on Viasat's position in the aviation connectivity market.

Financial Analyst

The commencement of commercial service for ViaSat-3 F1 is a pivotal moment for Viasat's financial outlook, albeit with some caveats:

• Revenue generation has begun, which is positive for cash flow and could help offset the costs of the satellite program.
• The reduced capacity due to the antenna issue may limit revenue potential and could impact profit margins.
• Successful deployment of the remaining two ViaSat-3 satellites will be critical for achieving the full financial benefits of the program.

Investors should focus on the upcoming financial results call on August 7 for detailed insights into the revenue projections and any potential write-downs related to the antenna issue. The market's reaction to this news may be cautiously optimistic, balancing the achievement of commercial service against the capacity limitations. Long-term financial impact will depend on Viasat's ability to maximize the satellite's reduced capabilities and successfully launch the remaining ViaSat-3 satellites.

New Viasat Capacity to Enhance Passenger Wi-Fi Services for Airlines Operating Over North America, Including Routes to Hawaii

CARLSBAD, Calif., Aug. 5, 2024 /PRNewswire/ -- Viasat, Inc. (NASDAQ: VSAT), a global leader in satellite communications, today announced that ViaSat-3 F1 (VS3 F1) has entered commercial service and is now available for aviation customers operating over North America, including routes servicing Hawaii. This follows a period of testing and live trials, which took place during the first half of the calendar year (2024).

"This is exciting news for our aviation customers and the millions of passengers who use inflight Wi-Fi services powered by the Viasat network," said Jimmy Dodd, President, Aviation segment at Viasat, Inc. "Bringing ViaSat-3 F1 into commercial service for aviation customers will significantly enhance the passenger experience available over North America, including streaming content and staying in touch with the world when flying."

"Today's announcement is also a significant technical achievement for Viasat and signals the start of revenue generating services from the first of our three ground-breaking ViaSat-3 satellites," added Craig Miller, President, Global Space Networks, Viasat, Inc. "A further two ViaSat-3 satellites are currently in the late stages of production and testing, including the successful completion of thermal vacuum testing on ViaSat-3 F3 recently and the successful completion of mechanical environmental testing on ViaSat-3 F2."

ViaSat-3 F1 experienced an antenna deployment anomaly following its launch in April 2023. However, extensive in-orbit testing demonstrated that all other systems on the satellite were operating at or beyond expectations. And while the antenna deployment anomaly resulted in a significant reduction in overall capacity, the resiliency and high-performance specifications of the ViaSat-3 satellite system still allows the satellite to support high-speed broadband services for aviation customers over North America, where the satellite is deployed.

Further information on ViaSat-3 F1 will be provided at our next financial results call on August 7, 2024.

About Viasat
Viasat is a global communications company that believes everyone and everything in the world can be connected. With offices in 24 countries around the world, our mission shapes how consumers, businesses, governments and militaries around the world communicate and connect. Viasat is developing the ultimate global communications network to power high-quality, reliable, secure, affordable, fast connections to positively impact people's lives anywhere they are—on the ground, in the air or at sea, while building a sustainable future in space. In May 2023, Viasat completed its acquisition of Inmarsat, combining the teams, technologies and resources of the two companies to create a new global communications partner. Learn more at www.viasat.com, the Viasat News Room or follow us on Facebook, Instagram, LinkedIn, X or YouTube.

Copyright © 2024 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat Signal are registered in the U.S and in other countries to Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.

Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934.  Forward-looking statements include, among others, statements that refer to the expected performance, capabilities and anticipated benefits of the ViaSat-3 F-1 satellite, including projected bandwidth coverage over North America and revenue generation; the production and testing of the two additional ViaSat-3 class satellites; and Viasat's ability to realize the anticipated benefits of the remaining ViaSat-3 class satellites.  Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements.  Factors that could cause actual results to differ include: risks associated with the construction, launch and operation of the ViaSat-3 class satellites, including the effect of any anomaly, operational failure or degradation in satellite performance; the ability to realize the anticipated benefits of the ViaSat-3 class satellites; unexpected expenses or delays related to the ViaSat-3 class satellites; the ability to successfully implement Viasat's business plan for broadband services on Viasat's anticipated timeline or at all, including with respect to the ViaSat-3 class satellites; contractual problems, product defects, manufacturing issues or delays; regulatory issues; technologies not being developed according to anticipated schedules, or that do not perform according to expectations; and increased competition and other factors affecting the connectivity sector, generally. In addition, please refer to the risk factors contained in our SEC filings available at www.sec.gov, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements for any reason.

View original content:https://www.prnewswire.com/news-releases/viasat-3-f1-satellite-enters-commercial-service-302214079.html

SOURCE Viasat, Inc.

FAQ

When did ViaSat-3 F1 satellite enter commercial service for Viasat (VSAT)?

ViaSat-3 F1 satellite entered commercial service on August 5, 2024, as announced by Viasat, Inc. (NASDAQ: VSAT).

What areas will the ViaSat-3 F1 satellite cover for Viasat (VSAT)?

The ViaSat-3 F1 satellite will cover North America, including routes servicing Hawaii, for aviation customers of Viasat (VSAT).

What issue did the ViaSat-3 F1 satellite experience after its launch in April 2023?

The ViaSat-3 F1 satellite experienced an antenna deployment anomaly following its launch in April 2023, resulting in a significant reduction in overall capacity.

How many ViaSat-3 satellites are planned by Viasat (VSAT)?

Viasat (VSAT) has planned three ViaSat-3 satellites in total, with two additional satellites currently in the late stages of production and testing.